Trading analysis

Knowing what to trade, when to trade and when not to trade depends on a thorough assessment of the markets. We provide every trader with the right tools to make a confident and independent decision, and regular market updates and analysis so you don't miss any trading opportunities.

Different ways to analyse a market

Technical analysis attempts to interpret future price movements by evaluating historical price and volume data. A variety of tools and methods are used to predict these futures prices. For example, different types of charts such as bar charts and candlestick charts, or the analysis of patterns generated by historic price movements, or the use of mathematical formulas known as indicators paint a clearer picture of the sometimes random looking price swings.

Fundamental analysis looks at the intrinsic value of a certain asset and tries to establish if it is currently over- or undervalued. For currencies an analyst would look at the economic health of a country by monitoring the release of economy indicators, the rhetoric and actions of central banks or social and political events. Interest rates are seen as one of the most important factors to determine if a country attracts or deters capital flows.

While fundamental analysis is taking a long-term view on a particular market to establish the correct valuation, technical analysis can be used to determine the right trade timing. Combining both methods gives you valuable insight into what to trade, when to trade and when to do nothing at all and remain on the side-lines.

The basic principles of technical analysis

Dow Theory, based on principles outlined by Charles Dow, the first editor of the Wall Street Journal, serves as the basis for technical analysis. The theory is founded on three central tenets:

Firstly, price movements are of primary importance. All major market forces are reflected in the price of an instrument. Every market shaping factor, such as political events, market sentiment, or supply and demand is reflected in the changing value of the instrument.

Technical analysis is the use of charts showing historical market data to forecast market trends and predict price movements. Technical information is displayed in graphical charts, updated in real time, which helps the technical trader predict when to buy or sell a given instrument. The trading information presented in financial charts, such as instrument prices, and trading volume, provides the basis for any technical trading strategy.

Primary technical analysis tools

Technical analysis focuses on the assessment of prices and volume to predict futures movements. There are a variety of different approaches and tools used to determine trends or market extremes.

Below is a list of some of the main technical analysis tools:

Price chart patterns

Indicators

Gaps

Support and resistance

Trends

Waves

Fundamental analysis

Fundamental analysis looks at the causes of market movements, from economic indicators, to weather, to political upheaval or government monetary policy. It allows traders to establish the value of a financial instrument, based on current political, social, economic and environmental factors. The theory behind fundamental analysis is that each instrument has an intrinsic worth and tends to move towards this value.

Primary fundamental analysis tools

Economic indicators are regularly published data reports that reflect the health of an economy and a country's monetary policy. Those indicators focus on a variety of sectors and they can impact the value of an instrument, if the report results are better, or worse than anticipated.

Below is a list of some of the main fundamental analysis tools:

Interest rates

Consumer and producer prices

Employment reports

Business sentiment

Retail sales

Gross Domestic Product

Access our trading analysis

As a registered user you get access to a wide range of tools designed to help you identify market opportunities. We provide regular market updates and cover both fundamental and technical analysis for you to get a clearer picture about the current market sentiment. With our ongoing support throughout your trading journey we want to provide you with the best trading experience possible.

Successful trading depends on a variety of factors and traders sometimes underestimate the importance of a reliable, stable and user-friendly trading platform suitable for traders of all skill levels. At Destek Global you will have access to the world’s most popular and industry-leading platform, MetaTrader 4.

Forex and CFDs are complex margin traded products, and carry a high risk to your capital which can result in losing all your deposits. Invest only what you can afford to lose and ensure you fully understand all the risks involved.

Destek Global Ltd is Authorised and Regulated by the Securities Commission of The Bahamas, licence number SIA-F191. A registered company in Bahamas, number 199346B, at registered address Trinity Place Annex, Corner Frederick and Shirley Streets, Nassau, Bahamas.